The US Department of the Treasury has proposed to expand the data sharing requirements brokers must comply with in relation to cryptos.
As stipulated in the explanations of the draft budget for 2022, the development of digital asset markets has allowed taxpayers to avoid paying taxes. The Ministry of Finance has written:
"Tax evasion using crypto assets is a rapidly growing problem."
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The department intends to extend the initiative to crypto exchanges and custodial wallets. These will be required to share information on account beneficiaries to the international information exchange network, which includes the United States.
If it is approved, the measure will take effect from 2023.
The Ministry of Finance has also proposed to introduce "full reporting on financial accounts." The rule will apply in cases where taxpayers buy crypto assets from one broker and transfer them to another.
The US Treasury had previously proposed to president Joe Biden's administration to introduce mandatory reporting to the Internal Revenue Service (IRS) of crypto transactions exceeding $10,000.